Jeffrey Bruma has left Chelsea for PSV Eindhoven in a deal worth around £2.5m, according to Sky Sports.
The former-Stamford Bridge youngster has signed a four-year deal with the Dutch giants after spending the past two seasons on loan at Hamburg in the Bundesliga.
The 21-year-old failed to make the grade at Chelsea, but the club are thought to have insisted on a buy-back clause as part of the transfer.
The Dutch youth international joined the 2012 European champions in 2007, but struggled to make an impression on the first-team.
PSV technical director, Marcel Brands, confirmed the club plans to sign the best young Dutch talent, with reports suggesting the Eredivisie side had also agreed to bring in Florian Jozefzoon from RKC Waalwijk.
Brands said: "They are talented players with all the necessary experience. Jeffrey is 21 years, Florian 22 years.
"They fit the philosophy that PSV have; we like the best Dutch talent in our ranks."
Bruma made just nine first-team appearances for Chelsea during the six years he was at the club, and also spent time on loan with Championship side Leicester City.
He had been linked with a permanent move to Hamburg after spending two seasons with the club, but the German side decided against it.